Best way to borrow £27k for only one month

Apples2

What is the penalty if you don't give the developer the money prior to 1st August?

Seems daft paying all this for a loan if the alternative is someone getting grumpy with you, and little else.
Of course they do know £27k is a lot for someone to obtain at a whim.

moneybunny123

Mallotum_X wrote: »

Speak with a mortgage advisor... and get a mortgage on the place you are buying.

We're not getting a new mortgage - that's the problem. When we sell our house we'll pay off the mortgage and have money in the bank (some of which we'll be using to pay off the developer for the house we rent out - the one with the shared equity)

lawrie28

Speak to the developer, offer to pay them whatever interest rate you can find online for the month or so's delay.

If you do take bridging finance, there will probably be some kind of fee involved, and possibly some need for security. Offer the interest only to the developers and they may see it as money for old rope, be much better than the interest they will pay on their overdraft on that kind of money.

nomoneytoday

The £270 is fine if it could be guaranteed to a specific date, but since the house hasn't exchanged there's the risk of non-completion

moneybunny123

I've found out that my bank will give me an overdraft for the required amount, but interest is charged daily. It will cost me about £300 to borrow the money for five weeks.

Do you think this sounds reasonable? I haven't spoken to the bank about a bridging loan, as technically, I'm not sure if it qualifies for one? I will be paying my mortgage off, so what incentive is there for the bank (with whom I have a mortgage) to lend me £27k for 5 weeks, when they wont have my business in a month or two?

Tixy

The incentive is that they would charge you a fee and make money from you. Thats how briding loans work.

£300 for 5weeks might not seem that bad, but what if your completion date on your property sale drops by another 4weeks, or falls through altogether, if that happened £27k on a overdraft (repayable on demand) would soon become a real nightmare.